Exuberance seems to be returning back to the Indian stock markets as Pranab Mukherjee's Union Budget 2011 lifted up the deteriorating market sentiments, although people at large had downplayed the mega event as they expected that it may not be a market moving affair but proving them wrong the progressive and balanced Budget took the markets back to the road to recovery. After being annihilated by around three percent in the last week, the benchmarks gathered strength to strength almost through the week and soared the most since the week ended November 5. For the week, the NSE's 50-share broadly followed index, Nifty spurted by around four and half a percent points to settle below the crucial 5,550 support level while the BSE's 30-share sensitive index, Sensex jumped about eight hundred points to close around the crucial 18,500 level. Other factors that underpinned the rally on the Dalal Street were, better than expected Manufacturing and Services sector PMI data for February, 32.4% yoy growth in exports for the month of January and positive weekly inflation data which calmed down to 10.39% for week-ended Feb 19.
WEEK GONE BY
The Bombay Stock Exchange (BSE) Sensex gained 785.78 points or 4.44% to 18,486.99 during the week ended March 04, 2011. The BSE Mid-cap index surged 3.46% to 6,592.12 and the Small-cap index increased 2.69% to 7,998.99. All the sectoral indices on the BSE were in the positive terrain; Auto was up 668.25 points or 8.10% to 8919.29, FMCG up by 223.06 points or 6.79% to 3285.67, Realty up by 121.18 points or 6.19% to 1956.28, Bankex up by 612.36 points or 5.18 to 12,444.59 and CG up by 625.28 points or 5.07% to 12325.46, were the major gainers on the index. The S&P CNX Nifty increased 235.20 points or 4.43% to 5,538.75. On the National Stock Exchange (NSE), CNX Mid-cap surged 4.07% to 7654.20, CNX Nifty Junior soared 3.84% to 10,407.40, Bank Nifty advanced 3.56% to 10,807.20, and CNX IT added 1.96% to 6,810.55. Food inflation in the country drifted lower over the week-ended Feb 19 after the marginal rise seen in previous week. According to the data released by the ministry of commerce and industry on Thursday, food price index rose 10.39% on annual basis during week-ended Feb 19.
WEEK AHEAD
Indian equity markets garnered a gain over 4% in the departed week on the back of slew of positive reports which kept the market resilient despite perturbed global markets. The Indian investor's will be eyeing the release of the index of Industrial Production (IIP) data for the month of January 2011 on the Friday, 11 March 2011. The output of the six core infrastructure industries which has grown by a ealthy 7.1% in January, has led some economists to predict a positive impact on the January Index of Industrial Production (IIP) numbers. The investors will also be watching out for Auto Industry Growth Data for the month of February 2011 expected to be announced in the coming week. From the global markets, the investor's will be eying lots of major economic data from the US, starting with employment Situation data due to be released after the Indian market hours on March 4, 2011(Friday), followed by International Trade and Jobless Claim Data to be announced on March 10, 2011 and finally the Retail Sales data to be announced on March 11, 2011. Hence we are expecting slightly range bound scenario between 5200-5670 though we expect sentiments remain biased. HAPPY TRADING…..
